By Tahir Abbas, Editor · Last updated 1 November 2026
Employers’ liability insurance covers your business when an employee is injured or becomes ill because of their work: an accident on site, exposure to a harmful substance, a repetitive strain injury. It pays compensation and legal costs, and in many places it is a legal requirement for employers.
This guide explains what employers’ liability insurance typically covers, what it leaves out, who it suits, and how to compare policies before you buy.
What employers’ liability insurance typically covers
- Compensation for employee injuries and work-related illness
- Legal costs of defending a claim
- Claims from current and former employees
- Work-related illness that develops over time, where covered
What employers’ liability insurance typically does not cover
- Injuries to members of the public — that is public liability
- Deliberate harm and reckless disregard for safety
- Claims outside the policy period, unless run-off or retroactive cover applies
- Motor accidents, which belong on a motor policy
Who employers’ liability insurance is for
Any business with employees, including part-time, temporary and seasonal staff. It is usually compulsory where staff are employed, and clients often ask to see proof of it before awarding contracts.
How to choose and compare employers’ liability insurance
- Check the legal minimum limit in your jurisdiction and buy at least that
- Confirm all worker types are covered, including agency and seasonal staff
- Look at whether the limit is per claim or in total for the policy year
- Keep records of health and safety measures — they affect claims and premiums
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Sources and Disclosure
This guide is general information, not financial advice. Plan features described here are general and vary by insurer and state; always read the sample policy before you buy. For the rules governing insurance in your state, see the consumer resources of the National Association of Insurance Commissioners (NAIC). Disclosure: Being Insurance is an independent comparison site. We may earn a commission when you buy through links on this page. That never changes which companies we list or the order we present them in.